Private Higher Education in Developing Countries • Studies show that size of private higher education sector varies greatly - significant in some countries and sectors, but small in others: • 100% of professional training market in Cote d’Ivoire • 44% of skills training market in The Gambia • almost non-existent in Mauritania • 75% of tertiary colleges in India • 9 private colleges and 200 private training institutes with 8,200 students - 21% of higher education sector - in Oman • 1,274 private institutions, with 4 million students in China • 37 tertiary institutions in Ghana (11 accredited).

Private Higher Education in Developing Countries • Common characteristics of private higher education sector: • fees are main source of revenue • private institutions serve both rich and poor - generally “second chance” students who could not get admission to public universities • sector is generally “younger” than private school sector (e.g., 1980s in post-reform China, 1990s in West and Central Africa) • complete range of institutions - from full-fledged universities to institutions that prepare students for national exams • range of institutional types - franchises, chains, sole proprietorships, for-profit companies, not-for-profits, religious-based organisations • institutions generally offer a limited range of professional/practically oriented courses (e.g., accounting, management, English) • often use part-time staff (practitioners, professors from public institutions) • regulatory framework less developed than in school sector.

Private Higher Education in Developing Countries: Significant Growth • Private higher education is growing strongly in many countries: • at least 3 new university colleges currently being set up in Ghana • a new private university is being created in Bahrain • 3 private universities approved in Oman. Nine private colleges created since mid-1990s • 500 new tertiary institutions created in China between 1995 and 1999 • 7 applications for private universities and 25 for private training colleges in Cameroon • recent UNESCO report called growth of the private sector the “most significant development in Arab higher-education systems in the 1990s”.

Private aided Catholic college Established 1972 Affiliated with Barkatullah University 1,200 students Generally middle class Excess demand for most courses Initial infrastructure funded by diocese Some teacher salaries paid by government (decreasing by 20% pa over 5 years) Tuition fees Rs 3,000/yr Quality constrained by Barkatullah University - syllabus not challenging enough and fees capped Plan to become autonomous college Institution Profile: Bhopal School of Social Sciences, Bhopal

What Government can do to Facilitate the Contribution of the Private Sector • Design framework based on assessment of appropriate role of the state in education. Employ the right regulatory mix: • ownership • funding • regulation • Adopt a light-handed and neutral regulatory framework: • no controls on fee setting by private institutions • no unnecessary barriers to entry • focus on information provision and ongoing review, rather than tight regulation and input controls to protect quality • clear, objective and efficient processes for accreditation • allow range of providers to operate - for-profits, not-for-profits • neutral and targeted funding and student assistance arrangements.

What Government can do to Facilitate the Contribution of the Private Sector • Allow foreign institutions to operate domestically and allow mutual recognition of degrees with foreign institutions • Make use of innovative instruments such as contracting, demand-side financing, private regulation and methods of disseminating information • Set up appropriate legal frameworks for private sector, including recognition of private sector role in legislation • Provide a strong macro regulatory framework to support private sector (including employment law, company law, judicial system, etc).

Institution Profile: Sichuan Normal University Film and Television Art Promotion College, Chengdu, Sichuan • Private boarding college, affiliated to a public university. Offers 2 and 3 diplomas and 4 year Bachelor’s Degrees • Established 1992, affiliated 1995 • 450 students from Sichuan Province pay fees of RMB10,000/year • Affiliation allowed film school to more easily obtain degree-granting status, which would have been diffi- cult as a private provider (only 37 degree-granting providers in China) • Students graduate with SNU degree.

Quality Assurance: Examples of Light Handed Regulation • Many examples of light-handed quality assurance mechanisms: • requirement that private colleges in Oman be affiliated to foreign institutions in order to receive accreditation • use of private sector in carrying out school reviews (e.g., CfBT undertakes reviews of public schools in Oman) • private sector provides information for consumers - “Good Universities Guide” in Australia • the Bahrain government provides info on private schools on the internet • private sector provision of school and university accreditation services (e.g., Seventh Day Adventist run their own accreditation services) • ERO review of New Zealand schools • Ghana’s requirement that institutions begin as university colleges affiliated to domestic universities before moving to university status. • Private sector can play big role in regulating quality.